MaryCaitPhalen

JohnMinbiole
CAS137H
27October2015
EthicalSourcing:WhyNow?
Imaginewalkingintoeverycollegestudentsfavoriterestaurant,Chipotle,acustomeris
immediatelygreetedbyphotosoffarmsandthewordsFoodWithIntegrity.Chipotleisoneof
thelargerglobalchainsthatisnowmarketingitselfasabusinessthatparticipateswithamodern
trendofethicalsourcing.Ethicalsourcingmeansthatproductsaresourcedfromplacesthat
supporttheenvironment,maintainhumaneanimalconditions,andfairlaborandtradeareas.
Thismovementmarksthechangeinpeoplecaringabouttheirfoodandwhereitcomesfrom.
Ethicalsourcingistheproductofeducationaboutthreemajormovements.Thefirstmovementis
thefairtrademovement,whichensurethatfarmersreceivefairpricesfortheirgoodsfromthird
worldnations.Thismovementoriginatedintheeightiesandisnowmarkedbylabelusually
statingthegoodiscertifiedbytheInternationalFairTradeCertificationmark(FairTrade,N.
andAdj.).Amovementawayfromfactoryfarmingandafocusonmorehumaneconditionsis
thesecondmovement.Withtheintroductionoffactoryfarmingandthegoalofraisinganimals
assimplypartofabusinessandthentheresultingbacklashandconcernsabouttheconditionsin
whichanimalsformeatareraisedcreatingchange.Thethirdandfinalmovementisthe
environmentalaspect,whichcombinesthefirsttwomovementswiththefairtradeincorporating
landmanagementeducationandproperlandmanagementtechniquesandthemovementaway
fromlargeamountsofpollutioncausedbyfactoryfarming.Thereisageneralconcernforthe

impact,environmentally,offeedingpeopleandworkingtowardsreducingwasteandpollutionin
allstepsoffoodprocessing.Therearetwomajorexamplesofcompaniesthatareprofitingand
thereforemarketingthemselvesasethicalfoodsources.ThefirstisChipotle,whothroughtheir
useofFoodWithIntegrityensuresthattheircustomersassociatetheirfoodwithpositive
feelingswithafocusonhumaneandenvironmentalpractices.ThesecondisStarbucks,with
theirfocusonsustainabilityandfairtrade.Bothofthesecompaniesemploysimilarmarketing
techniquesthatfocusonethicaltradeandappealtothegrowingmarketthatdesiresthese
products.Thesuddenchangeinthemarketingofproductsasethicallysourcedbylargebusiness
suggeststhatconsumersareconcernedwithwheretheirfoodcomesfromandshowsagrowing
concernfortheworldasmarketsglobalize.
Fairtradewasamovementbornoutofthelate1980s.Thismovementfocuseson
creatingamoreequalbalanceofpowerbetweentheproducersandsellersofmanycropproducts
suchascoffeeandchocolate.Fairtradehelpstheprimaryproducersrecoversomeoftheprofits
fromgoodsandfightsagainsttheneoclassicaleconomicalprinciplesthatdepresspricesofgoods
(FairTrade).Thismovementgotitsrootsin1988withHollandsMaxHavelaarinresponseto
arequestfromaMexicancoffeecooperativeforfairprices(FairTrade).Fairtradealso
attemptstomaintainheterogeneityofproductsandaccordinglypaysproducersmorefor
certainaspectsoftheircropssuchasorganictechniquesandmaintainingcertainenvironmental
practiceslikesoilmanagement(FairTrade).Allthesepracticesleadtoahigherprice,but
overallfairerpricingandthelabel,asnotedusuallybyasealfromInternationalFairTrade.
TheselabelscanalsocomefromnonfairtradeorganizationsliketheRainforestAlliance,which
alsoensuresthattheirworkersexercisefairtradepractices.AsstatedonRainforestCertified

Website,theirworkersareguaranteedbasicwagesandnominorsarehired.Thismovement
affectstheshifttoethicalsourcingthroughanumberofways.Asdecolonizationoccurred,
peoplebegantorecognizeinjusticesthatoccurredinagricultureandhowtheproducersofmany
luxurygoods,likecoffee,neveractuallyreceivedanyprofit.Inanattempttorectifythis,fair
tradewasborn.Thisleadtoethicaltreatmentofproducersandthereforeethicalsourcing
practiceswereborninconjunctionwithfairtradebeingpracticed.Companiesnowunderstand
thatthereisamarketforthismovementandpeoplearewillingtopayforethicallysourced
coffeebecauseitisviewedastherightthingtodotohelpthefarmersandensuretheycanmake
aliving.
Starbucksplaysonaconsumersempathyanddesiretocarefortheenvironmentand
workersbypairingimageswithstatisticsaboutwhattheirprogramC.A.F.Epracticesdoesina
videoseries.C.A.F.Epracticesisanindependentorganizationthatassessesthequality,
sustainability,andethicalpracticesofStarbucksCoffee("EthicalSourcing:Coffee.").Thevideo
startswiththeimagesofworkersworkinginproductivefieldsanddoingbasicfarmlabor.As
theywork,thedirectoroftheprogrambeginstodescribethebasicsofC.A.F.Epractices.
Throughtheimagesoftheworkers,smilingfamilies,andbountifulfarmsthevideosplayon
pathosbycreatingapositiveviewofthecoffeefarms.Itmakesthecustomermorelikelytowant
topaythehigherpriceassociatedwithethicallysourcedcoffee.Thecustomerwantstohelpout
thefarmersinthevideoandcontinuetoallowthemtosucceedbecauseoftheirfairtrade
practices.Asacustomerseesthefarmerstheyarehelping,theyformanemotionalconnection
andcanviewthebeneficiariesoftheirpurchases.Thevideo,throughthedescriptivediction,
createsanappealtologosandpathoswiththeuseoffactsabouttheimprovementofthelivesof

farmers.ThevoiceoverinthevideoprovidesfactsaboutwhatgoodStarbucksdoesinthe
community.Itconnectsthecoffeeonepurchaseswiththeincreasedcropyieldthevideoclaims
occurs.Thislogicallyforcesacustomertoconnecttheprogramsthecoffeepricepaysforwith
thedirectresultofimprovedagriculture.Thevideoemotionallyappealstoviewersbystating,
seeingthequalityoflifeforthefamiliesimprovewiththeprogramiswhatmakesC.A.F.E
different("EthicalSourcing:Coffee").Theseappealsensurethecustomerunderstandswhatan
impactStarbucksmakesinthelivesandfarmsofthefamiliesthatgrowthecoffee.This
marketingappealstothepeoplethatareconcernedaboutwheretheircoffeecomesfrom.Since
themarketnowfactorsethicsandmethodsoflaborintodecidingtopurchasegoods,theadis
effectiveincausingpeopletochooseStarbucksoverothercoffeebrands(FairTrade).This
appealtothemarketprovesapreferenceandthereforeshiftinwherefoodcomesfromwhich
comesaboutfromaconcernforthequalityoflife,asplayedoninthepathos,forthelivesof
othersinanowglobaleconomy.
Thesecondmajormovementthatcontributedandcausedthenewmarket,andresulting
changeinmarketing,wasfactoryfarming.Factoryfarmingwasbornoutoftheneedtobasically
massproducemeattomeetthegrowingmarketdemand.Animalsareraisedintheeconomically
efficientmeans,whichoftenincludesfarrowingcratesforpigs,batterycagesforchickens,and
oftenthousandsofanimalsinthesmallestspacepossible(Rollins).People,oncemadeawareof
theconditionsunderwhichfactoryanimalswereraised,optedfordifferentmeatchoicesdueto
anethicalquandarywithhowtheanimalsweretreated.Therewasacommissionin2006called
thePewcommissiononIndustrialFarmAnimalProductionandtheyevaluatednotonlythe
conditionsoftheanimals,buttheenvironmental,sustainability,nutrition,andeconomicimpacts

onsmall,localfarmsfactoryfarminghas(Rollin).Thiscommitteegaveareportin2008and
gainedover800reviewsandbroughtbigbusinessfarmingintothemindsofmillions(Rollin).
Theobviouseffectofthisisthatpeoplebegantoconsiderwheretheirfoodcamefrom.Thisin
turnbroughtallsortsofimplicationsofbigbusinessandagricultureintoafocuspointof
America.Addingfueltothefirewerethetwoothercommitteesthatreportedonfactoryfarming.
TheHumaneSocietyoftheUnitedStates,withheavymediacoverageofthecampaignto
eliminatevealcratesandsimilarconfinement(Rollin).Theresponsetothesereportswas
immediate.PeopleattemptedtobanfactoryfarmingpracticeswithlegislationoutsideofAnimal
Welfaregroups.Forexamplein2002,Floridavotersbannedgestationcratesforpigs,following
afterin2006;Arizonavotersoutlawedfarrowingcratesforpigsandvealcalves(Weeks).The
changesalsooccurredonagovernmentallevelwiththepassingofProp2,whichpreventslaying
hensfrombeingkeptinbatterycagesandhaslargerspacerequirementsforallhensimported
andraisedinCalifornia(Bittman).Thislawmarksadramaticchangeintheindustryandashift
inpublicopinion.Peopleimmediatelydesiredothermeatoptionsmakingthemarketfornon
factoryfarmsourcedmeatprofitable.InananalysisbyWeeksitisnotedthat,Themarketis
increasinglysegmentingintodifferentnichesoneforthelowestcostproduct,whereindustrial
producerscompeteagainsteachother,anddifferentmarketsfornaturalproducers,says
Hassebrook,attheCenterforRuralAffairs.Thebiggestopportunitiestodayforsmallfarmers
areinnichemarketswherefamilyfarmshaveacompetitiveadvantage.Consumerscareabout
healthandtheenvironment,andtheytrustsmallfarmerstoproducesafefoodinan
environmentallyresponsiblemanner.Themarketdemandshowsthefactthatthereisprofitand
thereforeafavorableopinionofnonfactoryfarmmeat.Theporkmarketispredictedtobeupto

25%naturalporkonlyintheupcomingyears(Bittman).Thisshiftshowsthatoncethepublicis
madeaware,theyareoftenwillingtopayalittleextratogettheirfoodfromethicalmeans.
Peopleareprovingtheycareabouttheconditionsofanimalswiththepassingoftheselaws
whichinturnleadstomoreethicalfoodsourcessincethefoodcomesfromanimals.Thisshiftis
beingplayedonbybigbrandslikeChipotle.
Chipotle,throughitscarefuldictionandfirmbusinessplan,marketsthemselvestoa
sectionofthemarketthatappealstothoseconcernedwithhumaneconditionsofanimals.On
theirwebsitetheyelaborateontheirFoodwithIntegrityslogan(FoodwithIntegrity).The
emphasisonthewordintegritycreatesanappealtopathosbecauseofitspositiveassociation.It
causestheviewertofeelmorallysoundabouttheirchoiceinfoodsincetheyarechoosingthe
optionwithintegrityorthemorallycorrectchoice.Chipotlealsocreatesethosforthemselvesby
stickingtothetheirslogan.Theydecidedtonolongerserveporkinsomeoftheirrestaurants
sincetheirporksupplierdidnotmeettheiranimalwelfarestandards(Storm).Inareportonthis
decision,StorminheranalysisofChipotlesdecisionquotesthecompanytostate,
Conventionallyraisedpigsgenerallydonothaveaccesstotheoutdoors,spendtheirlivesin
denselycrowdedbuildings,liveonhardslattedfloorswithnobeddingandnoabilitytoroot,and
aregivenantibioticstokeepthemfromgettingsickWewouldrathernotserveporkatallthan
serveporkfromanimalsthatareraisedinthisway.Thisimmediatelycreatesethosbecausethe
companystucktotheirmorals.Thisappealstothepublic,whowantstoseecompaniesalign
withpersonalmoralsandstanduptofactoryfarming.Thismarketingcampaignofhavingstrict
moralsandstickingtothemhasproventobeeffectivewitha19.8%raiseinsamestoresales
(Storm).Marketingtoanaudiencethatseesethicalsourcingasamoralchoiceiseffective

becauseoftheappealtostrongemotions,withmanypeopleseeingfactoryfarmingaseither
effectiveorawrong.
Thethirdfactorintheethicalfoodsourcingmovementwasveryestablishedbeforefood
sourcingevercameintoplayenvironmentalism.Eversincedatacameoutandthepublication
ofSilentSpring,environmentalismwasamajorconcernforAmericans.Thisconcernaboutthe
environmentnaturallytraveledoverintoconcernsaboutfood.Thetwopreviouslydiscussed
factorsallcontributetoconcernsabouttheenvironment.Partoffairtradeisfarmereducation
aboutthepropermanagementofthelandandfactoryfarmingcarriesmanyenvironmental
consequences.Toensureproperlandmanagement,Starbuckscoffeefollowstwomajorplaces
theRainforestAllianceCertifiedlabel,andtheirparentcompanySAN,andCAFEpractices.
TheRainforestAlliancewebsiteclaims,Thesefarmsandforestsaremanagedaccordingto
rigorousenvironmental,socialandeconomiccriteriadesignedtoconservewildlife;safeguard
soilsandwaterways;protectworkers,theirfamiliesandlocalcommunities;andincrease
livelihoodsinordertoachievetrue,longtermsustainability.Theirparentcompanymakes
similarclaimsstatingtohelpmanageland,ensureworkereducation,andpromotelongterm
conservation(OurSustainabilityPrinciples").Chipotlesconcernabouttheenvironmentisnot
unfounded.Factoryfarmingcancausemanypollutants.ManypeoplelivingnearFactoryfarms
noteaconcernaboutpollutionofwaterwithantibiotics,pathogens,andmanure(Weeks).Weeks
alsonotesthatrecentstudiesfoundlakesnearthemanurelagoonscontain160chemicals,unsafe
levelsofhydrogensulfides,andproducelargeamountsofgreenhousegases.These
environmentalissuesplayintothelargerenvironmentalmovementthatisalreadywidely
publicizedandaconcernformostAmericans.Theseconcernsonlyriseasmorereportsandmore

peopleareeducatedleadingtoveryseriousconcernsabouttheimpactofbigagricultural
businesses.
Starbucks,throughtheirnumerousenvironmentalprogramsandcoffeewith
environmentallabels,andChipotle,throughitswebsiteandFoundation,marketthemselvesto
thosewithenvironmentalconcerns.ChipotleontheirFoodwithIntegritysiteclaimstobuy
localproduceandserveover20millionpoundsofit.ChipotlealsohastheChipotleCultivate
Foundation,whichisanonprofitthatsupportssustainableagricultureandfoodeducationand
contributesover3milliondollarstothesecausesthroughBurritoSales(FoodWithIntegrity).
Starbucksreleasedaplanthattalkedaboutitssustainabilitygoalsandwhatithopestoachieve.
Forexample,thereusablecupprogramwants5%ofallbeveragesservedinreusablecups
(StarbucksGlobalResponsibilityReport2014).InthereportStarbucksalsoclaimed,In2008
Starbuckssetagoaltoreduceourwateruseincompanyoperatedstores25%by2015.We
approachedthatgoalin2014withasavingsofmorethan23%overbaselinelevels,andtosave
25,000moregallonsofwaterusedtomakecoffee.Finallythereportstates,Starbucksethical
sourcingprogramcontinuedtogrow,andin2008wesetagoalthatby2015,100%ofStarbucks
coffeewouldbeethicallysourcedthroughC.A.F.E.Practices,Fairtrade,oranotherexternally
auditedsystem.In2014,96%(400+millionpounds)ofourcoffeemetthisstandard,with95.5%
C.A.F.E.Practices,8.6%Fairtrade,and1%organic(somecoffeesreceivemultipleverifications
orcertifications).Allofthesemovementscreateanappealtoenvironmentalpathos.This
appealstothenewmarketbyensuringthemthattheyaremakingtheethicallysoundchoice.The
appealtopathosiscreatedthroughthedictionofthesustainabilityplanswithafocusonthe
futurethroughworldslikegoals.Thisfuturefocusisappealingbecauseitfollowsthe

environmentalmovementsfocusforthefutureoftheworld.Thepublicthenassociatesthe
investmenttheymadeinthecompanybybuyingtheproductasaninvestmentinthefutureofthe
worldaswell.Chipotlescampaignandfocusonthefuturecreatesthesamefocusonthefuture
aswellandusesthesameappeal.
Thefocusonethicalfoodsourcingbroughtaboutaneducationandconcernaboutthe
originoffoodandnaturallycausedbigbusinesstoappealtothesenewmarkets.Starbucksand
Chipotlethroughtheirvideos,reusablecups,slogansandtheGlobalResponsibilityreportor
sourcingplanscreateanappealtoitsconsumersgrowingconcernfortheworld.Theshift
towardsmajorchainsmarketingtowardscustomerswhowantethicallysourcedfoodmeansthat
thepriceoffoodmustgoup.Theissuethatcomesalongwiththepriceincreaseistheconcern
aboutfeedingthoseofalowerincome.Thosewhohavealowerincomealreadyhaveissueswith
accessingadiversedietoffruit,vegetables,andmeatandmighthaveevenmorelimitedoptions
asallfoodpricesgoup.Alreadylargefooddesertscouldeasilybemadeintoadriersituation.
Thefinalconcernthisshiftbringsiscanitprovidefoodforthe7billionandgrowingpopulation.
Thisshift,thoughoverallpositive,leavesthequestionofhowtosustaintheenvironmentandthe
growinghumanpopulationinaglobalizedworld.

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